A Saudi investment fund has invested $3.5 billion in Pokémon Go, acquiring the gaming division of Niantic in a move that marks a significant step for the country’s gaming industry.
The gaming division of Niantic, the developer behind the hit mobile game Pokémon Go, is set to be acquired by Saudi Arabia’s Public Investment Fund (PIF) in a deal worth $3.5 billion (£2.7 billion). This move marks the latest step by ‘Saudi Arabia to develop its gaming industry, which has been a significant focus for the country in recent years.’
Released in 2016, Pokémon Go is a location-based augmented reality game developed by Niantic.
The game allows players to capture and train virtual 'Pokémon' that appear in real-world locations using their mobile device's camera.
With over 1 billion downloads worldwide, Pokémon Go has become one of the most popular mobile games of all time.
Players can participate in raids, battles, and other events to catch rare 'Pokémon' and compete with others.
The game's success led to the creation of a dedicated community with numerous fan sites, forums, and social media groups.
The World of Pokémon Go
Pokémon Go is one of the highest-grossing mobile games in the world, with 30 million monthly players. The game involves players walking around in the real world to hunt collectable creatures, which appear on their phone screens using augmented reality. Despite launching almost a decade ago, ‘Pokémon Go remains a popular title, and its acquisition by PIF is seen as a positive step for the game’s future.’
Niantic’s Portfolio
The deal includes Niantic’s other games, such as Monster Hunter Now and Pikmin Bloom, along with the people employed to make them. These titles will become part of Scopely Inc, which itself was bought by PIF subsidiary Savvy Games Group for $4.9 billion in 2023. Scopely is one of the biggest names in mobile gaming, with its most successful title, ‘Monopoly Go, being downloaded over 50 million times and generating more than $3 billion in revenue.’
Pokémon’s Future
Ed Wu, who leads the Pokémon Go team at Niantic, expressed his support for the acquisition, stating that it was a ‘positive step’ for the game’s future. However, he also emphasized that how the game is created and evolved will remain unchanged, and that he hopes to make the experience even better.
Saudi Arabia’s Gaming Ambitions
Saudi Arabia has been investing heavily in its gaming industry, with PIF having stakes in some of the biggest publishers in the industry, such as Nintendo, Electronic Arts, and Take-Two Interactive. The country has also made waves in the eSports industry, hosting major tournaments including last year’s eSports World Cup, which had a prize pool of over $60 million.
A New Era for Gaming
The acquisition of Niantic’s gaming division by PIF marks an important milestone for Saudi Arabia’s gaming ambitions. With its oil wealth and significant investments in sports such as golf, boxing, and football, the country is becoming an increasingly powerful player in the gaming industry. As PIF continues to expand its portfolio, it will be interesting to see how this acquisition shapes the future of Pokémon Go and the wider gaming industry.
